Insurance regulator IRDA has imposed a penalty of Rs 15 lakh on IndusInd Bank for violation of norms related to receipt of commission.
The fine relates to IndusInd Bank’s receipt of commission as corporate agent of Cholamandalam General Insurance Company.
In its order, IRDA said on review of the data submitted by Cholamandalam General Insurance, it was observed that “the corporate agent (IndusInd Bank) has received payments from the insurer over and above the permissible commission limits...” The payments received by the IndusInd Bank was in the form of “data base sharing/incentives to the employees of the corporate agent and infrastructure setting up costs” for financial years 2007-08, 2008-09 and 2009-10.
Accordingly, the Insurance Regulatory and Development Authority said, “A penalty Rs 5,00,000 each for financial years 2007-08, 2008-09 and 2009-10 totalling of Rs 15,00,000 is imposed”.
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